Page 5 - Wealth-Adviser-Issue-118 (FWP)

ISSUE 118
AUGUST 2025

STABLE MONEY

IN AN UNSTABLE WORLD

WEIGHING THE PROMISE AND PERIL

OF DIGITAL CURRENCIES worldspectrum/pexels.com

BY WEALTH ADVISER can strengthen remittance and payroll systems for global
businesses…improve the experience for participants by
Introduction: The Changing Face of Money reducing settlement times and costs” .
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Economic turbulence and rapid technological change Circle’s USDC exemplifies these benefits: transactions
have converged to reshape our understanding of what settle almost instantly on-chain, with fees often a fraction
constitutes money. As digitisation permeates every aspect of of bank wire costs . In remittances—from Australia to the
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modern life, the very nature of currency is evolving beyond Pacific Islands, for instance—stablecoins could cut interme-
physical notes and coins. “As every aspect of our lives has diaries and foreign-exchange margins.
been transformed by digitisation, the changing nature Moreover, stablecoins serve as a store of value in volatile
of money and currencies should come as no surprise” . currencies. As one Australian analysis notes, AUD-pegged
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Stablecoins—cryptocurrencies pegged to fiat currencies and tokens offer protection against inflationary pressures in
built on blockchain—have emerged as a new form of digital emerging markets: “AUD stablecoins matter as a hedge
money promising faster, cheaper transactions. Yet their against inflationary pressures, preserving purchasing power
rapid rise brings profound questions around privacy, sur- where local currencies fall short” .
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veillance and financial control. This article examines both With more than two billion dollars paid annually in card
sides of the stablecoin story, helping Australian consumers fees domestically, Australians stand to benefit from reduced
navigate opportunities and risks in an increasingly digital costs . For freelancers, small exporters and families support-
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payments landscape. ing loved ones overseas, stablecoins present a compelling
alternative.
Promise of Stablecoins: Speed, Cost and
1Accessibility Peril of Surveillance
Stablecoins offer near-instant settlement and often lower 2and Control
transaction costs compared with traditional rails, particular- Yet the architecture that gives stablecoins transparency
ly in cross-border and underbanked contexts. “Stablecoins also raises critical privacy concerns. Blockchain’s public

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